MEXICO CITY, May 8 (Reuters) – Solar International Core Canada signed an agreement with the central Mexican state of Hidalgo to invest $2 billion in building a factory for active pharmaceutical ingredients, Mexican and Canadian authorities said on Friday.
The announcement came as Mexican Economy Minister Marcelo Ebrard visited Canada on a two-day trade mission alongside hundreds of Mexican business representatives, during which Canada said over 10 memorandums of understanding were signed.
According to Mexican authorities:
• As part of the MOU signed between SICC’s CEO Babak Arefpour and Hidalgo State Secretary for Economic Development Carlos Henkel, SICC said it would set aside $70 million to buy a plot of land in Zapotlan, where it plans to build the plant.
• Process Research Ortech Inc also agreed to consider investing $380 million in a battery materials processing plant in Puebla state.
• Separately, INTE Modular said it was considering investing up to $360 million in a modular housing plant in Mexico’s southern Chiapas state.
• Sustainable Agave Holdings Ltd also said it was considering investing $100 million in an agave pulp plant in Jalisco state.
• “We ended the day with a $2 billion investment for Hidalgo. That alone made the entire mission worthwhile, although we are seeing many more results,” Ebrard said in a statement.
Canada’s government added that:
• Mexico’s Grupo Bimbo, one of the world’s top producers of baked goods, agreed to spend around $146 million to modernize its Canadian facilities.
• During the mission, Ebrard and Canada’s minister in charge of U.S. trade, Dominic LeBlanc, discussed strengthening the U.S.-Mexico-Canada trade agreement, which is currently undergoing a review.
($1 = 1.3676 Canadian dollars)
(Reporting by Sarah Morland; Editing by Tom Hogue)